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VMX

ValmecASX:VMX Stock Report

Market Cap

AU$51.9m

7D

0%

1Y

111.5%

Updated

15 Oct, 2021

Data

Company Financials
VMX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

VMX Overview

Valmec Limited, a diversified energy and infrastructure services company, provides equipment, construction, commissioning, maintenance, and asset integrity services to the oil and gas, resources, and infrastructure sectors in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Valmec
Historical stock prices
Current Share PriceAU$0.41
52 Week HighAU$0.17
52 Week LowAU$0.41
Beta1.12
1 Month Change1.23%
3 Month Change28.91%
1 Year Change111.54%
3 Year Change52.78%
5 Year Change194.64%
Change since IPO71.88%

Recent News & Updates

May 14
Valmec (ASX:VMX) Is Experiencing Growth In Returns On Capital

Valmec (ASX:VMX) Is Experiencing Growth In Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Mar 23
These 4 Measures Indicate That Valmec (ASX:VMX) Is Using Debt Extensively

These 4 Measures Indicate That Valmec (ASX:VMX) Is Using Debt Extensively

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

VMXAU Energy ServicesAU Market
7D0%-1.2%0.9%
1Y111.5%-1.3%20.2%

Return vs Industry: VMX exceeded the Australian Energy Services industry which returned -1% over the past year.

Return vs Market: VMX exceeded the Australian Market which returned 19.3% over the past year.

Price Volatility

Is VMX's price volatile compared to industry and market?
VMX volatility
VMX Beta1.12
Industry Beta1.95
Market Beta1

Stable Share Price: VMX is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VMX's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a350Steve Dropulichhttps://www.valmec.com.au

Valmec Limited, a diversified energy and infrastructure services company, provides equipment, construction, commissioning, maintenance, and asset integrity services to the oil and gas, resources, and infrastructure sectors in Australia. Its services include gas compression and processing; process services engineering, procurement, and construction; infrastructure service construction; petrochemical and mining fabrication; electrical and underground services; civil and earthworks solutions; asset preservation, service, and maintenance; asset integrity and inspection; structural mechanical piping; electrical and instrumentation; and completions and commissioning services. The company is headquartered in Kewdale, Australia.

Valmec Fundamentals Summary

How do Valmec's earnings and revenue compare to its market cap?
VMX fundamental statistics
Market CapAU$51.93m
Earnings (TTM)AU$8.79m
Revenue (TTM)AU$137.45m

5.9x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMX income statement (TTM)
RevenueAU$137.45m
Cost of RevenueAU$110.04m
Gross ProfitAU$27.41m
ExpensesAU$18.62m
EarningsAU$8.79m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.07
Gross Margin19.94%
Net Profit Margin6.40%
Debt/Equity Ratio14.4%

How did VMX perform over the long term?

See historical performance and comparison

Valuation

Is Valmec undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VMX (A$0.41) is trading below our estimate of fair value (A$10.28)

Significantly Below Fair Value: VMX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VMX is good value based on its PE Ratio (5.9x) compared to the Global Energy Services industry average (16.4x).

PE vs Market: VMX is good value based on its PE Ratio (5.9x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VMX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VMX's PB Ratio (1.4x) is in line with the AU Energy Services industry average.


Future Growth

How is Valmec forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

40.5%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Valmec has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Valmec performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VMX has high quality earnings.

Growing Profit Margin: VMX's current net profit margins (6.4%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: VMX's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: VMX's earnings growth over the past year (4008.9%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: VMX earnings growth over the past year (4008.9%) exceeded the Energy Services industry 1.3%.


Return on Equity

High ROE: VMX's Return on Equity (23.5%) is considered high.


Financial Health

How is Valmec's financial position?


Financial Position Analysis

Short Term Liabilities: VMX's short term assets (A$61.4M) exceed its short term liabilities (A$33.0M).

Long Term Liabilities: VMX's short term assets (A$61.4M) exceed its long term liabilities (A$7.4M).


Debt to Equity History and Analysis

Debt Level: VMX's debt to equity ratio (14.4%) is considered satisfactory.

Reducing Debt: VMX's debt to equity ratio has reduced from 49.4% to 14.4% over the past 5 years.

Debt Coverage: VMX's debt is well covered by operating cash flow (261.6%).

Interest Coverage: VMX's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

What is Valmec current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VMX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VMX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VMX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VMX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VMX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VMX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.7yrs

Average management tenure


CEO

Steve Dropulich

8.67yrs

Tenure

AU$509,610

Compensation

Mr. Steve Dropulich has been Managing Director of Valmec Limited since February 2013. Mr. Dropulich served as Vice President and Managing Director at Enerflex AustralAsia Holdings Pty. Ltd.Mr. Dropulich s...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD377.91K) is about average for companies of similar size in the Australian market ($USD300.24K).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VMX's management team is seasoned and experienced (8.7 years average tenure).


Board Members

Experienced Board: VMX's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Valmec Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Valmec Limited
  • Ticker: VMX
  • Exchange: ASX
  • Founded: NaN
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: AU$51.927m
  • Shares outstanding: 125.88m
  • Website: https://www.valmec.com.au

Number of Employees


Location

  • Valmec Limited
  • 17 Ballantyne Road
  • Kewdale
  • Western Australia
  • 6105
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 07:04
End of Day Share Price2021/10/07 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.